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SLM Corp retains buy rating and $27 price target from TD Cowen

EditorBrando Bricchi
Published 06/07/2024, 02:51 PM
SLM
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On Friday, TD Cowen maintained a Buy rating for SLM Corp (NASDAQ:SLM), with the price target set at $27.00. The firm's decision followed discussions with SLM's CFO, Peter Graham, during the Financial Services & Fintech Summit. Key topics covered included loan originations, credit performance, and competitive dynamics.

SLM Corp, known for its services in education finance, recently finalized a significant loan sale. At the end of May, the company announced the closure of a $1.5 billion loan sale. This transaction was completed earlier than anticipated by analysts. While the Gain on Sale (GOS) was not disclosed, indications suggest it may have been more favorable than the levels seen in the first quarter.

The summit provided an opportunity for the CFO to elaborate on various strategic aspects of the company's business. Discussions spanned the management of loan sales and balance sheet growth, as well as strategies around share buybacks and deposit pricing. These elements are crucial for understanding SLM's financial health and future prospects.

TD Cowen's reiteration of the Buy rating indicates confidence in SLM Corp's operational strategies and financial performance. The firm's positive outlook is based on the recent financial moves and discussions with the company's CFO, which shed light on SLM's current market position and its plans for growth.

The maintained price target of $27.00 reflects the firm's assessment of SLM Corp's value and potential in the market. Investors and stakeholders in SLM Corp will likely monitor the company's progress closely, especially in terms of credit performance and competitive positioning in the financial services sector.

In other recent news, SLM Corp., a prominent player in education financing, demonstrated robust first-quarter earnings for 2024, with a GAAP diluted EPS of $1.27 per share, a significant increase from $0.47 in the same period last year. Analysts at TD Cowen have raised the stock price target for SLM Corp. from $25 to $27, citing expected growth in the company's market share in the private student loan sector, driven by increasing enrollments.

On a different note, Sylvamo announced its first-quarter 2024 financial results, surpassing analyst revenue expectations and slightly exceeding EPS estimates. The company reported earnings of $1.07 per share and revenue of $905 million, both higher than consensus estimates.

These recent developments reflect a positive outlook for both companies in their respective sectors. For SLM Corp., the increased stock price target suggests confidence in the company's strategy and future performance. Sylvamo's financial results highlight the company's resilience and potential for continued growth.

It's important to note that these insights are based on recent analyst reports and company earnings calls, providing an up-to-date view of the companies' financial health and market positions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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